TFU | Jan. 22-28

SEC Chairman Jay Clayton put the agency on “high alert” for ICOs and firms seeking quick gains from the digital currency craze; the CFTC sued crypto firm My Big Coin for allegedly running a Ponzi scheme using fake digital currency; Japanese digital currency exchange Coincheck was hacked for over $500M; Coinbase announced its 2017 revenue was over $1B; and blockchain was a notable topic of discussion at this year’s WEF conference in Davos.

In the News

Clayton puts SEC on “high alert” for ICOs. Securities and Exchange Commission (SEC) Chairman Jay Clayton said he is instructing his staff “to be on high alert” for ICOs “contrary to the spirit of our securities laws.” The SEC is also “looking closely” at firms “shift[ing] their business models to capitalize on the perceived promise of [blockchain].”

China wants to integrate blockchain into financial services. China’s bank regulator published a white paper on the importance of developing and regulating financial technologies [full text]. In particular, it recommended integrating blockchain into China’s “financial service platforms [as] part of [China’s] future strategy.”

SoFi names former Twitter COO as its new CEO. The online lender announced that Anthony Noto would become its new CEO, replacing founding CEO Mike Cagney, who left last year amid sexual harassment allegations. Some expect Noto to move SoFi toward an IPO in the next year or so.

Coinbase’s 2017 revenue topped $1B. The cryptocurrency exchange reportedly earned $1 billion in revenue last year, as virtual currencies became mainstream and speculation fueled a dramatic surge in pricing. Coinbase earns money by charging both the buyer and seller a fee between 0.25%-1% of each transaction’s value.